Economy Watch: European View (March 2024)
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Global Economic Outlook

Economy Watch | Europe

Monthly updates on the state of the economy in Europe

Economy Watch: European View (March 2024)

March 18, 2024

The Euro Area economy is on a path towards recovery, with both business and consumer sentiment improving further in February. Inflation resumed its downward trend, but stickier services prices further complicate the ECB’s policy decision-making. In its March meeting, the bank left its main policy rate unchanged at an all-time high of 4 percent. Timelier data on negotiated wages growth may bring the ECB closer to cutting interest rates. But as the slowdown in wage growth was not as steep as expected, a June cut is now more likely. Looking ahead, we make only slight changes to our forecasts, expecting any recovery to be modest in 2024, while getting closer to its long-term growth trend in 2025. 

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